MICROCAPITAL BRIEF: EIB Lending CIH Bank of Morocco $73m to Support SMEs, Mid-caps in Adjusting to COVID-19 Pandemic

The European Investment Bank (EIB), an entity of the EU, recently agreed to loan EUR 60 million (USD 73 million) to Crédit Immobilier et Hôtelier (CIH) Bank, which is controlled by the government of Morocco, to on-lend to small and medium-sized enterprises (SMEs) and mid-caps that have suffered from the COVID-19 pandemic. Among the EU guidelines for defining an SME is that it employs 11 to 250 people.

In support of the loan, EIB will share with CIH Bank its “expertise in promoting green financing and optimising the provision of financial services to SMEs and, in particular, the smallest companies.” The organizations’ goals include “increasing competitiveness” in ways that lead to “boosting employment, particularly for young people.”

Founded in 1920, CIH Bank focuses on personal banking as well as the tourism and real estate sectors. It serves approximately 1 million customers – including companies large and small – via 300 branches. As of March 2021, the bank held total assets of MDH 90.5 billion (USD 10.3 billion). CIH Bank is part of the Caisse de Dépôt et de Gestion Group, which is owned by the government of Morocco and has been active in financial services since its founding in 1959.

EIB, founded in 1958, is “focused on innovation, SMEs, infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution “adds value in project implementation and the modernisation of public policies thanks to its technical and financial expertise and advisory services.” As of December 2020, its total assets amounted to EUR 554 billion (USD 675 billion) with disbursements during the previous year totaling EUR 58.3 billion (USD 71 billion).

By Teo Lin-Bianco, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2021-184-la-bei-et-cih-bank-joignent-leurs-forces-pour-renforcer-le-soutien-aux-entreprises#

CIH Bank homepage
https://www.cihbank.ma/

CIH Bank financial reports
https://www.cihbank.ma/corporate/espace-financier/resultat-financier

Caisse de Dépôt et de Gestion LinkedIn profile
https://www.linkedin.com/company/cdgmaroc/

EIB homepage
https://www.eib.org/

EIB financial report 2020
https://www.eib.org/attachments/general/reports/eib_financial_report_2020_en.pdf

Previous MicroCapital news on EIB
https://www.microcapital.org/microcapital-brief-finnvera-to-issue-780m-in-pandemic-relief-loans-in-finland-with-75-guarantee-from-eib/

EU definition of SMEs
https://ec.europa.eu/growth/smes/sme-definition_en

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.